My iPhone 4 won't update to the latest iPhone Software update

Can someone help me understand why I can't update my iPhone 4 with the latest softeware. It will download about 116kb and then an error message will come up and read:

There was a problem downloading the software for the iPhone "Keyia's iPhone". The network connection timed out. Make sure your network settings are correct and your network connection is active, or try later.

I'm obviously connected to the internet so that's not the issue. Please help!

I had exactly same problem during upgrade of iphone to ios 4.1. I resolved it by disabling my antivirus program which tried to check downloaded upgrade file for possible viruses. This obviously iTunes do not like.

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